LSB Industries (NYSE: LXU) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LSB Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Revenue details
LSB Industries recorded revenue of $215.4 million. The three analysts polled by S&P Capital IQ predicted revenue of $198.2 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $172.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $1.19. The three earnings estimates compiled by S&P Capital IQ forecast $0.86 per share on the same basis. GAAP EPS of $1.20 for Q4 were 46% higher than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 33.2%, 170 basis points better than the prior-year quarter. Operating margin was 23.2%, 280 basis points better than the prior-year quarter. Net margin was 13.0%, 250 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $200.4 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $839.6 million. The average EPS estimate is $3.64.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 563 members out of 580 rating the stock outperform, and 17 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give LSB Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSB Industries is outperform, with an average price target of $47.00.
Over the decades, small-cap stocks, like LSB Industries have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add LSB Industries to My Watchlist.
